Aarti Industries has entered into a material amendment to its exclusive long-term supply agreement originally signed (Main Agreement) with Leading Global Chemical Company. Under the Main Agreement, one of the critical feedstock was provided by the Customer. As part of the extended scope, the company will undertake a backward integration project to set up a plant that shall manufacture a significant share of this key feedstock in-house, thereby transitioning to a highly integrated, end-to-end manufacturing model.

The company expects to invest around Rs 200 - 250 crore over a period of the next two years towards this upstream integration. This backwards-integrated facility is expected to be set up at the same location (where the current plant is situated) to cater to requirements under the Main Agreement, i.e., at Dahej SEZ, Gujarat. The enhanced integration will enable highly integrated end-to-end manufacturing of the end Product from the company’s facilities, opex & freight optimisation through in-house manufacturing vs external sourcing, improved supply chain resilience and enhanced safety in materials handling.

The Main Agreement, which laid the foundation for a unique, long-term engagement has evolved significantly over time. This expansion underscores the company’s demonstrated ability to build, nurture, and scale enduring global partnerships while continuously expanding its scope and value.

Aarti Industries (AIL) is a leading Indian manufacturer of speciality chemicals and pharmaceuticals with a global footprint.